Drawback - Fixation  of  brand  rate  of  duty drawback  by the  Central Excise  field  formations under  Rules  6  and  7  of  the  Customs  and  Central Excise  Duties  Drawback  Rules, 1995 -  Removal  of difficulties.

Document Text

Circular No. 97 /2003-Customs 14th November, 2003 F.No.603/32 /2003-DBK Government of India Ministry of Finance Department of Revenue Central Board of Excise & Customs Sub: Fixation of brand rate of duty drawback by the Central Excise formations under Rules 6 and 7 of the Customs and Central Excise Duties Drawback Rules, 1995 - Removal of difficulties – regarding. field is invited Attention the Customs Circular No.83/2003 dated 18th September, 2003 whereby detailed instructions along with illustrations had been given for computing duty drawback by formations under rule 6 and rule 7 the Central Excise of the Customs and Central Excise Duties Drawback Rules, 1995. field to as The well field formations as 2. trade have expressed certain difficulties in implementation of para 3(a )(i) of the said Circular. Through this paragraph, the Board had prescribed that while fixing the brand rate of drawback for leather goods including shoes, shoe uppers, etc., the element of duty drawback to be provided at the All Industry Rate available finished/lining for these products are on leather. Since the drawback rate ad valorem basis with duty drawback caps, it was prescribed inputs that be these inputs as evidenced by local procurement invoices. leather has for drawback procurement finished/lining computed of the element price these the on on of on 3. It has been represented that this procedure is difficult to be applied where - (a) only raw hides or wet blue leather, i.e., unfinished leather is procured fro m the market and the same undergoes the process of finishing in the manufacturer exporter’s own factory, or (b) leather (wet blue leather) or hides are procured by the manufacturer exporte carried r out supply the finished leather to the manufacturer exporter. is same subsequently process workers on who unfinished finishing where but the the the job the by 4. The issue has been examined. It is clarified that in such cases, the exporters may be asked to furnish the purchase invoice as to the procurement of the raw hides/wet blue leather. They should also furnish a certificate from the Chartered Accountant/Cost Accountant as processing chemicals used for its processing and other incidental overhead charge s incurred. The purchase price of raw hides/wet blue leather along with these processing costs and charges should be reckoned for the purposes of computing duty drawback element on the finished/lining leather by applying the All Industry Rates of Duty Drawback. consumption cost and the to of 5. Suitable public notices for information of the trade and standing orders for guidance of the staff may kindly be issued accordingly. 6. The receipt of this Circular may kindly be acknowledged. S.S. Renjhen Joint Secretary to the Government of India Telefax No.23341079.

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